What does high unemployment typically lead to in relation to government expenses?

High unemployment typically leads to increased welfare expenses. When unemployment rises, more individuals and families find themselves without a steady income. As a result, they may rely on government assistance programs such as unemployment benefits, food assistance, and other social welfare programs to help meet their basic needs. This surge in demand for welfare assistance causes the government to allocate more resources toward these programs, thus increasing overall government spending.

In contrast, during times of low unemployment, fewer people depend on these assistance programs, allowing for a reduction in welfare expenses. Understanding this relationship is crucial as it illustrates how economic conditions directly impact government fiscal policy and expenditures.